AUD/CHF turned lower earlier this week, but the pair still looks ready to extend its weeks-long trend.
Think we’ll see a bullish reversal in the next trading sessions?
Here’s what we’re watching on the 4-hour time frame.
AUD/CHF 4-hour Forex Chart by TradingView
Easing U.S.-China trade tensions gave risk sentiment a boost earlier this week, lifting commodity currencies like the Australian dollar. More recently, the Aussie got a short-term lift from solid jobs data, hinting the RBA may take its time easing policy.
At the same time, mid-week U.S. dollar strength on reduced expectations for Fed rate cuts has put some pressure on alternatives like the Swiss franc.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Australian dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/CHF, which has been in an uptrend since early July, recently pulled back from the .5300 psychological level and is now trading closer to .5245.
This area could draw in buyers, with prices lining up with the 50% Fibonacci retracement of August’s upswing, the 100 SMA, and the Pivot Point at .5240.
Even more interesting, the pair is now close to the bottom of an ascending channel pattern that’s held for weeks.
Watch for green candlesticks and a bounce off the Pivot Point, which could set up a move back to .5300 or even new monthly highs.
But if we see more red candles and this week’s drop extends, the pair could break lower and head toward .5200 or .5180, both key levels from earlier in the month.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
